Singapore's economy could miss its official forecast in third quarter

ALL content used in this not-for-profit blog remain the property of their respective owners.
http://www.channelnewsasia.com/news/singapore/singapore-economy-may/816402.html

Singapore's non-oil domestic exports (NODX) contracted unexpectedly in August, falling 6.2 per cent on-year following a 1.9 per cent drop in July.

August's fall is the seventh straight month of decline, according to figures from trade agency International Enterprise Singapore (IE Singapore).

The pullback in trade performance surprised some economists who had expected a 2.4 per cent on-year increase in August NODX.

Compared to July, NODX declined by 6.0 per cent in August, following the previous month's 1.8 per cent contraction.

From January to August, NODX fell 7.7 per cent on-year, and some economists say Singapore could miss its official forecast of a 0 to 1 per cent growth this year.

Singapore's economy may even see a contraction in the third quarter, following a strong 15.5 per cent quarter-on-quarter growth in the second quarter.

Shipments of both electronics and non-electronics products were all lower in August. Some economists say that the poor trade performance suggests that global growth outlook may not be as rosy as expected, and perhaps market expectation has gone ahead of fundamentals.

Apart from uncertainties in the emerging markets, some economists say growth in the US and Europe is also far from being firm, with unemployment still high in the developed economies.

The government expects the Singapore economy to grow by between 2.5 and 3.5 per cent this year.